STAT+: Supreme Court rejects Purdue bankruptcy plan

The U.S. Supreme Court rejected a controversial bankruptcy deal in which the owners of Purdue Pharma sought to contribute up to $6 billion in exchange for immunity from further lawsuits. The ruling means the company and its creditors — numerous states, cities and counties, as well as Native American governments — will have to negotiate a new settlement.

The 5-4 decision was a rebuke to members of the Sackler family, who control the company and insisted on the legal shield in return for contributing to the settlement even though, as individuals, they did not file for bankruptcy. The immunity had been a huge sticking point and prevented the settlement, which was first approved by a bankruptcy judge three years ago, from being finalized.

Purdue was accused of downplaying the risks of OxyContin and improperly persuading physicians to prescribe the addictive painkiller. And after facing a growing number of lawsuits filed by state and local governments seeking restitution from the fallout of the long-running opioid crisis, the company subsequently sought bankruptcy protection.

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